Yellen also touched on two hot button topics for American jobs - globalization and automation, and argued those forces make education all the more important. Investors are on board, with a wave of irrational exuberance sending the Dow closer to its 20,000-point milestone.
That the Fed, which under chair Janet Yellen has been perceived as staunchly dovish and committed to a gradual pace of tightening, already appears to be preparing for more reflationary policies under the Trump administration is enough to convince currency strategists that the dollar is likely to strengthen further next year. One would not be mistaken to call this a December-2015 redux, as the Federal Reserve Bank had indicated a likely three-step increase in 2016, at the same time previous year. With higher interest rates expected in the future, bond prices are poised to fall and yields to rise. Although we may see a correction or a consolidation in U.S. equities as the market digests the prospects of much higher interest rates, the USA bull market is very much alive and kicking. The currency hit a low of 1,187.2, the weakest since late June of this year. That is complete nonsense. "They did it despite having no confidence in the economy, because they didn't want to send a message that they were that anxious", he continued.
The increase, which is subtle, wasn't entirely surprising, partly because 2016 has been a year of relatively robust economic growth. That's higher than the forecast growth for 2017, which Yellen announced to be 2.1% last Wednesday.
The Fed noted that inflation has been running below it 2% target rate and that they are committed to getting there.
Hospitals Could Face Hundreds of Billions in Cuts With ACA Repeal
However, if you don't have insurance, then the hospital still has to make money at the end of the day. That's about $305 per subsidized Florida customer per month, the Kaiser Family Foundation said.
Yellen reminded students, however, that, in this modern economy, an education is crucial to helping young people remain optimistic about their job prospects. The reality is, markets are heading into the quieter, low volume Christmas period and now the Federal Reserve's rate decision last week has come and gone, markets are simply taking the opportunity to take some profits off the table from the strongest and most sustained dollar rally since 2008. However, mainstream economists believe markets do not always follow the USA money market rates as other market factors come into play.
So, the first reason shareholders shouldn't worry about rising bond yields is that they are expressing the very same underlying thought as share prices. I'm sure they're over-estimating it again for 2017. The QCB had kept its policy rates unchanged in 2015 and managed the situation to ensure comfortable liquidity in the system and stable interest rates to support growth with economic diversification. The benchmark gauge rose as much as 75 points earlier. "Look at the increase we've already had in mortgage rates".
United States stocks ended higher after wavering in a tight range as investors digested a speech from Federal Reserve Chair Janet Yellen.
"The market wants to have it both ways".